KSL Holdings Ltd reports 23,960% EBITDA growth in 2020 and 43.0 pp EBITDA Margin growth from 0.33% to 43.3%
28/09/2020 • About KSL Holdings Ltd (
$8170) • By InTwits
KSL Holdings Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- KSL Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 0 m in FY2020, 1 m in FY2019, 0 m in FY2018, 2 m in FY2017, 1 m in FY2016
- In the last 5 years the company invested considerably less than D&A: 4 m vs. 44 m. In FY2020 this situation was still the same: CAPEX was 0 while D&A was 40
- The company has highly profitable business model: ROIC is 22.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 13.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 82.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 43.0 pp from 0.33% to 43.3% in FY2020. During the last 5 years EBITDA Margin bottomed in FY2018 at -50.2% and was growing since that time.
Gross Margin jumped on 13.9 pp from 17.1% to 31.0% in FY2020. SG&A as a % of Revenue decreased on 9.2 pp from 20.2% to 10.9% in FY2020.
Net Income margin jumped on 13.0 pp from -6.8% to 6.2% in FY2020. During the last 5 years Net Income margin bottomed in FY2018 at -39.3% and was growing since that time. The efficient tax rate was 44.1% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.055%. KSL Holdings Ltd's CAPEX/Revenue decreased on 3.8 pp from 3.8% in FY2017 to 0.055% in FY2020. It's average level of CAPEX/Revenue for the last three years was 0.45%.
Return on investment
The company operates at high and attractive ROIC (22.1%) while ROE is a bit lower (13.5%). ROIC jumped on 23.8 pp from -1.7% to 22.1% in FY2020. ROE surged on 22.6 pp from -9.1% to 13.5% in FY2020. During the last 5 years ROIC bottomed in FY2018 at -22.8% and was growing since that time. During FY2016-FY2020 ROE bottomed in FY2018 at -16.5% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.4x. Net Debt / EBITDA jumped on 194.7x from -193.3x to 1.4x in FY2020. Debt surged while cash jumped on 26.2%.
KSL Holdings Ltd has questionable short term financial stability: Interest coverage ratio (ICR) is only 2.0x. KSL Holdings Ltd has no short term refinancing risk: cash is higher than short term debt (114.6%).
Average interest expence charged on company's debt was 10.8% in FY2020.
Management team
At the end of financial year the company had 53 employees. The number of employees surged on 20.5%. Average revenue per employee in FY2020 was 3,555,132 and it surged on 51.6%.
Financial and operational results
FY ended 31/07/2020
KSL Holdings Ltd ($8170) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 124.8 | 47.4 | 37.2 | 103.2 | 188.4 | 82.6% |
| Gross Profit | 32.4 | 13.5 | 3.6 | 17.7 | 58.5 | 230.9% |
| SG&A | 18.2 | | 23.7 | 20.8 | 20.6 | -0.9% |
| EBITDA | 19.5 | -12.9 | -18.7 | 0.3 | 81.6 | 23,960.2% |
| EBIT | | -14.3 | -19.8 | -1.3 | 41.6 | |
| Interest expence | | | | | 21.1 | |
| Tax | | 0.6 | 0.5 | -2.4 | 9.2 | |
| Net Income | 14.7 | -11.4 | -14.7 | -7.1 | 11.7 | |
Balance Sheet
|
|---|
| Cash | 103.2 | 21.1 | 66.6 | 65.5 | 82.7 | 26.2% |
| Accounts Receivable | | | | | 21.7 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 72.2 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 123.3 | |
Cash flow
|
|---|
| Capex | 0.5 | 1.8 | 0.1 | 1.2 | 0.1 | -91.3% |
Ratios
|
|---|
| Revenue growth | -19.2% | -62.0% | -21.4% | 177.0% | 82.6% | |
| EBITDA growth | -51.1% | -166.2% | 44.5% | -101.8% | 23,960.2% | |
|
|---|
| Gross Margin | 25.9% | 28.4% | 9.7% | 17.1% | 31.0% | 13.9% |
| EBITDA Margin | 15.7% | -27.3% | -50.2% | 0.3% | 43.3% | 43.0% |
| EBIT Margin | | -30.2% | -53.1% | -1.2% | 22.1% | 23.3% |
| SG&A, % of revenue | 14.6% | | 63.6% | 20.2% | 10.9% | -9.2% |
| Net Income Margin | 11.8% | -24.0% | -39.3% | -6.8% | 6.2% | 13.0% |
| CAPEX, % of revenue | 0.4% | 3.8% | 0.1% | 1.1% | 0.1% | -1.1% |
|
|---|
| ROIC | 16.9% | -13.9% | -22.8% | -1.7% | 22.1% | 23.8% |
| ROE | 14.7% | -11.2% | -16.5% | -9.1% | 13.5% | 22.6% |
| Net Debt/EBITDA | -5.3x | | | -193.3x | 1.4x | 194.7x |
| Interest coverage ratio (ICR) | | | | | 2.0x |
| Interest expence / Average debt | | | | | 10.8% | |
People
|
|---|
| Employees | | 26 | 22 | 44 | 53 | 20.5% |
| Revenue/Employee, th. | | 1,823 | 1,693 | 2,345 | 3,555 | 51.6% |
Peers in Engineering&Construction
Below you can find KSL Holdings Ltd benchmarking vs. other companies in Engineering&Construction industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kingbo Strike Ltd ($1421) | - | 168.1% | 18.5% | 19.6% | 270.3% |
| Vision Fame International Holding Ltd ($1315) | 40.9% | -39.8% | -19.8% | 2.3% | - |
| |
|---|
| Median (2 companies) | 6.3% | 64.2% | -0.6% | 11.0% | 270.3% |
|---|
| KSL Holdings Ltd ($8170) | - | -62.0% | -21.4% | 177.0% | 82.6% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kingbo Strike Ltd ($1421) | 14.1% | 33.4% | 8.0% | 10.4% | 8.3% |
| Vision Fame International Holding Ltd ($1315) | 3.0% | 4.2% | 5.7% | 4.7% | - |
| |
|---|
| Median (2 companies) | 12.9% | 18.8% | 6.8% | 7.5% | 8.3% |
|---|
| KSL Holdings Ltd ($8170) | 25.9% | 28.4% | 9.7% | 17.1% | 31.0% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kingbo Strike Ltd ($1421) | 1.4% | -50.1% | -0.8% | -8.3% | -22.4% |
| Vision Fame International Holding Ltd ($1315) | 0.7% | -0.1% | -0.6% | -10.7% | - |
| |
|---|
| Median (2 companies) | 5.3% | -25.1% | -0.7% | -9.5% | -22.4% |
|---|
| KSL Holdings Ltd ($8170) | 15.7% | -27.3% | -50.2% | 0.3% | 43.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vision Fame International Holding Ltd ($1315) | 0.1% | 2.7% | 5.1% | 4.1% | - |
| Kingbo Strike Ltd ($1421) | 1.0% | 0.8% | 0.1% | 0.4% | 0.0% |
| |
|---|
| Median (2 companies) | 2.4% | 1.7% | 2.6% | 2.3% | 0.0% |
|---|
| KSL Holdings Ltd ($8170) | 0.4% | 3.8% | 0.1% | 1.1% | 0.1% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kingbo Strike Ltd ($1421) | 0.3% | -34.4% | -1.0% | -8.5% | -29.4% |
| Vision Fame International Holding Ltd ($1315) | 2.5% | -1.4% | -3.1% | -25.6% | - |
| |
|---|
| Median (2 companies) | 2.5% | -17.9% | -2.0% | -17.1% | -29.4% |
|---|
| KSL Holdings Ltd ($8170) | 16.9% | -13.9% | -22.8% | -1.7% | 22.1% |
